July 29, 2025 — A growing number of multinational corporations are shifting their Global Capability Centers (GCCs) from Eastern Europe to India, driven by the country’s cost-effective operations, abundant digital talent, and stable business environment.
This relocation trend, observed over the past 12–18 months, signals a strategic pivot by global enterprises aiming to enhance operational efficiency and tap into India’s deep technological expertise. Industry analysts report that India’s GCC ecosystem is witnessing rapid expansion, with cities like Bengaluru, Hyderabad, Pune, and Chennai emerging as top destinations.
According to data from IT industry body Nasscom, India currently hosts over 1,600 GCCs employing more than 1.6 million professionals. This number is expected to grow significantly, with projections suggesting the addition of up to 500 new centers by 2030. The surge is being led by sectors such as banking and financial services, pharmaceuticals, consumer goods, and manufacturing—all seeking to bolster digital transformation and innovation capabilities.
“India offers unmatched advantages, including a rich talent pool in AI, data analytics, and cloud technologies,” said Rajan Sethuraman, CEO of LatentView Analytics. “GCCs are no longer just about cost savings—they are becoming global innovation hubs, and India is well-positioned to lead this evolution.”
In contrast, Eastern European countries like Poland, Hungary, and the Czech Republic are experiencing rising labor costs and talent shortages, making it increasingly difficult for global firms to scale their operations in the region. Additionally, geopolitical uncertainties and economic pressures have prompted many organizations to look towards more stable and scalable locations.
A recent report by global consultancy Everest Group highlighted that the operating cost of a GCC in India is approximately 25–30% lower than in Eastern Europe. Moreover, India’s regulatory stability and policy support for digital infrastructure are further enhancing its appeal.
Companies relocating their centers cite several advantages, including access to digitally skilled professionals, availability of high-end R&D capabilities, and improved time zone alignment for global operations. Tech-driven cities like Bengaluru and Hyderabad are especially favored due to their mature IT ecosystems and strong university-industry linkages.
“India’s strength lies in its ability to deliver both scale and specialization,” noted a senior executive at a U.S.-based financial services firm that recently expanded its Indian GCC. “Whether it’s cybersecurity, product engineering, or advanced analytics, we’re finding the capabilities we need here.”
The GCC relocation movement underscores India’s rising stature as a global strategic operations hub. As companies look to future-proof their business models, India is emerging not just as a cost center, but as a critical engine for innovation, resilience, and global growth.
